All of reporter Jason Chen's property seized in the resulting
raid will be returned, but Gawker will hand over the documents on
Chen's computers that the cops want.

Wired says the warrant was withdrawn as part of a deal between
Gawker and the prosecutors, with Gawker agreeing to provide some
documents from Jason Chen's computers. What Gawker may have
gotten in this deal (in addition to Chen's hardware) is the
ability not to be deposed by prosecutors.

This presumably still leaves Gawker open to getting charged with
a crime.

*UPDATE: In the first version of this post, I
jumped to the conclusion that this was a much bigger win for
Gawker and Jason Chen than it was. (I didn't have all the details
about the deal). Apologies...